HDAN Backs 9.75% FirstBank-MREIF Mortgage, Calls for Inclusive Access for Low-Income Nigerians
Housing Advocates Welcome FirstBank’s 9.75% Mortgage Initiative
The Housing Development Advocacy Network (HDAN) has welcomed the introduction of a 9.75% mortgage facility by FirstBank of Nigeria under the Mortgage Refinancing and Equity Investment Fund (MREIF), describing the initiative as a major step toward improving access to affordable housing finance in Nigeria. However, the group urged policymakers and financial institutions to ensure the programme remains inclusive, particularly for low-income earners and workers in the informal sector.
A Shift Toward Affordable Mortgage Financing
In a statement issued in Abuja, HDAN Executive Director Festus Adebayo said the new mortgage facility signals a positive shift in Nigeria’s housing finance system, where high borrowing costs have historically limited homeownership opportunities.
According to him, mortgage rates in Nigeria have often ranged between 18% and 25%, making structured home financing unaffordable for many households. The introduction of a single-digit mortgage rate of 9.75% could therefore create a realistic pathway for Nigerians seeking to move from renting to owning homes.
Importance for Nigeria’s Housing Sector
Nigeria continues to face a significant housing shortage, with millions of households unable to access adequate and affordable homes. Analysts widely consider limited access to long-term, low-interest mortgage financing one of the biggest barriers to housing development in the country.
HDAN noted that initiatives such as the MREIF-backed mortgage scheme could help unlock large-scale housing development by:
Expanding access to long-term housing finance
Encouraging private sector investment in residential construction
Supporting broader homeownership among middle- and low-income Nigerians
The group added that a more accessible mortgage market would stimulate construction activity and create jobs across the building materials, engineering, and real estate value chains.
Call for Inclusion of Informal Sector Workers
Despite welcoming the initiative, HDAN warned that eligibility requirements must be carefully designed to avoid excluding millions of Nigerians who work outside the formal economy.
The organisation stressed that the mortgage framework should allow flexible eligibility conditions, ensuring individuals in the informal sector who represent a significant share of Nigeria’s workforce can also benefit from the programme.
Advocates argue that without inclusive criteria, the mortgage facility could disproportionately benefit formally employed individuals while leaving out those who arguably need affordable housing solutions the most.
Need for Broader Housing Sector Collaboration
HDAN also called for stronger collaboration among stakeholders including government institutions, mortgage banks, developers, and financial institutions to expand the supply of affordable homes that would meet the expected rise in demand from improved access to mortgage financing.
The group emphasised that Nigeria’s housing challenge requires innovative financial solutions and sustained policy support capable of lowering borrowing costs while increasing housing supply.
The endorsement of the 9.75% FirstBank–MREIF mortgage facility by HDAN highlights growing momentum toward improving housing finance in Nigeria. While the initiative could mark a significant milestone in addressing affordability challenges, stakeholders say its success will depend on inclusive implementation and expanded housing supply to ensure that low-income Nigerians can fully participate in the dream of homeownership.
